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there is not a bank that will do less bad in a difficult environment. this stock has had an amazing run back up from -- it was below 100 a couple of months ago. i would expect consolidation here. short period of time. let's not forget we are seeing rotation in other sectors. we were talking about on fast last night some of the things that contributed a great deal of performance to a lot of portfolio managers. these stocks are up a lot. goldman sachs is up 33% year to date. if you are nerving about potential head winds in november with the elections and that sort of thing it may make sense. what we are seeing today is taking profits. >> financials are up about 20%. certainly one of the big winners so far this year. dan is putting a put calendar on goldman. we crack open the play book. in the strategy we sell the daily put and use the money to buy the long on the same strike. you want the stock to be above the strike or put the strike before the expiration. so dan why don't you walk us through it? >> we use this last week. it worked very well for earnings
there is not a bank that will do less bad in a difficult environment. this stock has had an amazing run back up from -- it was below 100 a couple of months ago. i would expect consolidation here. short period of time. let's not forget we are seeing rotation in other sectors. we were talking about on fast last night some of the things that contributed a great deal of performance to a lot of portfolio managers. these stocks are up a lot. goldman sachs is up 33% year to date. if you are nerving...
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what couldn't of environment are we in? >> there is uncertainty, but people recognize that you can't stand still. >> what regrets do you have about the period of time at bear stearns, after bear stearns, or did it create opportunity for you? >> let's not talk about that. >> not no comment at all? okay. you heard it there. >> too painful. he hasn't done the regressive therapy on that yet. he wasn't ready for it. >> clearly doesn't want to really talk about that period of time. james pli dimon happy to, but alan schwartz not so much. >> there are healthy companies willing to do m&a. but i think it emphasizes his point. yes, companies, investors have to be cautious, but they have cash and they're a good value out there. >> and he was talking about high yield. and there's a feeling that we're not anywhere near the end of that yet. >> absolutely clear. high yield debt still looks attractive to a lot of investors. it's a good opportunity. >> thank you so much for joining us. have a good weekend. plenty still to come. >> we want t
what couldn't of environment are we in? >> there is uncertainty, but people recognize that you can't stand still. >> what regrets do you have about the period of time at bear stearns, after bear stearns, or did it create opportunity for you? >> let's not talk about that. >> not no comment at all? okay. you heard it there. >> too painful. he hasn't done the regressive therapy on that yet. he wasn't ready for it. >> clearly doesn't want to really talk about...
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Oct 12, 2012
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. >> can you compete in this environment? >> it is very difficult to make money in this environment because -- on a net interest margin basis. that doesn't mean that the banks should be asleep at the switch. we have recognized the pressures that are being placed on us by our net interest margin, and accordingly, we have started to increase our fee income business, which in our case is our residential mortgage business, particularly the refinance activity. >> certainly as we've just heard from gerry, it is so important these days to get business from re-fis and mortgages because obviously those low interest rates are hurting so many other areas of revenue for banks. is this across the board or are some banks doing this better than others? >> well, what we would think is that the larger mortgage franchises will be able to enjoy increased market share. as you see the refinancing activity picking up. some of the larger banks like wells fargo or jpmorgan that we saw announce earnings today get the benefit of being able to originat
. >> can you compete in this environment? >> it is very difficult to make money in this environment because -- on a net interest margin basis. that doesn't mean that the banks should be asleep at the switch. we have recognized the pressures that are being placed on us by our net interest margin, and accordingly, we have started to increase our fee income business, which in our case is our residential mortgage business, particularly the refinance activity. >> certainly as we've...
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>> well, we're happy to perform in any sort of environment, michelle. i think what you've seen in wells fargo over the last decade is earnings growth through a lot of different periods, whether we've got a strong economy, a weak economy, a high interest rate, low interest rate. again, we have a very customer-focused, diversified model, and we can perform. we've had 11 consecutive earnings of growth even in the bumpy economy. >> we would be remiss if we didn't ask about this lawsuit taking you to task for a mischaracterization of mortgages. you're not alone in this. other banks have been sued and settled on these same charges, on reckless lending. where do you stand on that? what's your response to it? >> well, the allegations in that lawsuit are just that. they're allegations. they're not facts. we're going to defend ourselves very vigorously. we're the largest fha lender in the country. we think the fha program is a terrific program. it's helped millions of americans obtain their dream of homeown homeownership. we're proud to be part of the program. ou
>> well, we're happy to perform in any sort of environment, michelle. i think what you've seen in wells fargo over the last decade is earnings growth through a lot of different periods, whether we've got a strong economy, a weak economy, a high interest rate, low interest rate. again, we have a very customer-focused, diversified model, and we can perform. we've had 11 consecutive earnings of growth even in the bumpy economy. >> we would be remiss if we didn't ask about this lawsuit...
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you're getting fat and ruining the environment at the same time. stop! >> well i'll tell you, nobody wants to drive cars anymore. you know we want to be more like europe. we want cars that will fit in the trunk of the cars we used to drive. >> i bet you go to a drive-thru and eat and drive. >> you can't text and drive. you can eat and drive, you can have a big italian subway sandwich in your hand but you can't have a cell phone. i just look up the chain here, it's not non-existent but there is not a lot of pipeline pressure when i look up, look at intermediate goods and raw or unfinished goods. for example in the core i want to give you one number and then we'll move on. crude goods 2.8, again including but take out food and energy it's 1.6. those are big numbers but the thinking is they passed through. if they don't we have to examine fed policy. they are important. they are important. >> steve, yesterday you had a fantastic interview. >> thank you. >> with blankfein, with bowles, with simpson. >> right. >> and i think i could say, i watched every secon
you're getting fat and ruining the environment at the same time. stop! >> well i'll tell you, nobody wants to drive cars anymore. you know we want to be more like europe. we want cars that will fit in the trunk of the cars we used to drive. >> i bet you go to a drive-thru and eat and drive. >> you can't text and drive. you can eat and drive, you can have a big italian subway sandwich in your hand but you can't have a cell phone. i just look up the chain here, it's not...
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Oct 12, 2012
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. >> has it hurt from the interest rate environment that we live in, which hurts the banks? >> yes, it has, because everybody knows that. so you'll get some more loan growth. i like aig. >> but as well as fargo surprised us with how bad the environment is from a net interest margin which plays directly into lower interest rates. >> you made money in wells fargo and made money in jpmorgan. what happened was expectations over the last month or so exceeded what reality was going to be, now is the time to get back in, that it's been reset. >> next up on "halftime" it's turning into one of wall street's biggest battles. walmart, amazon or best buy will come out on top and the first financial results are in. which bank. we'll continue that discussion, which bank should you be banking on? our traders debate which stocks are the best buys right now. we'll talk apple, too, rumors about the ipad mini, is a date really set? can it resume the rally in america's most valuable company, all that and more when "halftime" comes back. sometimes investing opportunities are hard to spot. you ha
. >> has it hurt from the interest rate environment that we live in, which hurts the banks? >> yes, it has, because everybody knows that. so you'll get some more loan growth. i like aig. >> but as well as fargo surprised us with how bad the environment is from a net interest margin which plays directly into lower interest rates. >> you made money in wells fargo and made money in jpmorgan. what happened was expectations over the last month or so exceeded what reality was...
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Oct 12, 2012
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and that's especially true in an environment like this one. where so many hedge funds are lagging the market and so few really hot growth stocks. these guys are fighting for their professional lives, people. so they know they can't afford to have their clients ask them, you moron, why didn't you own google or visa or amazon or vista ulta salon or tractor supply, sherwin-williams or diageo. i believe they have been anointed by growth orient eed portfolio managers. if it's a really bad market it won't matter, but i had stay focused on the hot list between now and the last week of december. and that brings me to two new ones. the last anointed names that round out the series. two smoking biotech stocks that have been rallying like crazy. first one is alexon a alexion, r the year and gilead, up 66% over the same period. alexion is one of these orphan drug companies, solarus treats rare blood disorders, called pnh it can lead to an emma, clotting and death. they g when you have a drug that treats an ultra rare, often lethal condition with no known
and that's especially true in an environment like this one. where so many hedge funds are lagging the market and so few really hot growth stocks. these guys are fighting for their professional lives, people. so they know they can't afford to have their clients ask them, you moron, why didn't you own google or visa or amazon or vista ulta salon or tractor supply, sherwin-williams or diageo. i believe they have been anointed by growth orient eed portfolio managers. if it's a really bad market it...
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we know our super rate environment has pushed boat loads of investors with fixed income incomes out of stocks. where does it end? there is a limit of the funds available for stocks. some investors will continue to hold cash. do you see future downward pressure on stocks as the available cash dries up? >> first, it ends for the texans on sunday night. anyway, that's an nbc gig with green bay. here's the deal. everyone's tried to looking through this issue. they all keep saying, listen, the bulb in yield is going to pop. the bubble in yield is going to pop. these companies haven't raised them the way they can. they can increase with buying back stock and increasing the price of stock. i think they will be ecstatic and saying the dividend isn't worth that much. how about if it increases dramatically like for warehouser and many companies. these are not treasury bonds, they are organic. they live. just in time for the vice presidential debate, there is a great divide on the street today. when animals attack, bulls and bears go at it again. i'm here to figure out who will win this game. i'l
we know our super rate environment has pushed boat loads of investors with fixed income incomes out of stocks. where does it end? there is a limit of the funds available for stocks. some investors will continue to hold cash. do you see future downward pressure on stocks as the available cash dries up? >> first, it ends for the texans on sunday night. anyway, that's an nbc gig with green bay. here's the deal. everyone's tried to looking through this issue. they all keep saying, listen, the...
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Oct 12, 2012
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in other words, you don't collapse in liquidity environment. i'll tell you, one step further, if i may, there is this concept, and it's a little complicated called the mar shalian k. if you have greater liquidity than can be absorbed by the economy. it works wonderfully if you're looking at emorninging markets. it doesn't work wonderfully in the u.s. because there are other assets to go to. real estate, commodities, currency. it doesn't have to go to equities. it's more limited in emerging economies. >> let me ask about the sectors you like in this march higher than 12% by the end of 2013. financials, information technology, tell com and utilities. telecom and utilities seem surprising and i'm surprised the materials and energies aren't entries in this, if you are expecting secular bull market to really kick in next year and for there to be growth out there. >> there are a lot of questions that i'm not going to have enough time to address. but when we do our work on the sectors or industry groups, we do it at those group levels. i'm not going t
in other words, you don't collapse in liquidity environment. i'll tell you, one step further, if i may, there is this concept, and it's a little complicated called the mar shalian k. if you have greater liquidity than can be absorbed by the economy. it works wonderfully if you're looking at emorninging markets. it doesn't work wonderfully in the u.s. because there are other assets to go to. real estate, commodities, currency. it doesn't have to go to equities. it's more limited in emerging...
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what secretary panetta said in a pre-9/11 environment we had warning to do something. he's pointing to cyberspace right now in that same way. remember, larry, i was there, and i saw those warnings and the cyberspace were in the same space. nbc news terrorism analyst, thank for helping us out. ? you bet. up, in, mitt romney won last week's debate big time. he became a game changer. what's the case he made to reelect barack obama? no one seems to know that including obama himself. that's next on "the kudlow report." ♪ [ male announcer ] the first look...is only the beginning. ♪ ♪ introducing a stunning work of technology. ♪ introducing the entirely new lexus es. and the first ever es hybrid. this is the pursuit of perfection. >> there was also one person on the stage when actually asked what he'd do to get the economy going again had an answer. he laid out our five-point plan to get this economy going and the other candidate, of course, just attacked. but the american people are looking for answer, not attacks. >> welcome back to "the kudlow report." the american
what secretary panetta said in a pre-9/11 environment we had warning to do something. he's pointing to cyberspace right now in that same way. remember, larry, i was there, and i saw those warnings and the cyberspace were in the same space. nbc news terrorism analyst, thank for helping us out. ? you bet. up, in, mitt romney won last week's debate big time. he became a game changer. what's the case he made to reelect barack obama? no one seems to know that including obama himself. that's next on...